UAE News: Abu Dhabi ADQ Wealth Fund Buy to Buy 45% Stake in Louis Dreyfus Co. - Bloomberg
Billionaire Margarita Louis-Dreyfus agreed to sell a 45% indirect stake in agricultural trader Louis Dreyfus Co. to Abu Dhabi sovereign wealth fund ADQ, opening the storied family company to outside ownership for the first time in its history.
The deal will give Louis-Dreyfus, who controls more than 96% of the holding company that owns LDC, an injection of much-needed cash in return for giving up nearly half of the family business. She has been taking big dividends over the past few years to help repay about $1 billion she borrowed to buy out other family members.
The deal confirms talks between Louis Dreyfus first reported by Bloomberg in September. Financial terms were not disclosed but the companies said $800 million of the proceeds from the sale would be invested into LDC to support strategic investments.
For ADQ, formerly known as Abu Dhabi Development Holding Co., acquiring a minority stake in one of the four largest traders of grains, oilseeds and sugar will help boost food security for the United Arab Emirates. In June, the fund held talks with banks to raise loans to finance an acquisition spree that included buying a 50% stake in agricultural business Al Dahra Holding Co.
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